In Shawnee Community Unit School District No. 84 v. PTAB, the Illinois Supreme Court ruled that payment of property taxes “under protest” (i.e., before the appeal is concluded) is not a prerequisite to filing an appeal at the Illinois Property Tax Appeal Board (“PTAB”). As we previously reported, a school district intervened in a power plant’s assessed value PTAB appeal. The school district argued that the owner could not file a PTAB appeal because the owner had not paid the power plant’s property taxes and the plant’s unpaid property taxes were sold at the county delinquent tax sale.
In finding that payment under protest was not required, the Court emphasized that no statute expressly requires payment under protest in PTAB appeals. The Court also found that a PTAB appeal and the county tax sale could proceed simultaneously even though the circuit court enters judgment against all unpaid property taxes as part of the county tax sale process. Thus, taxpayers can appeal to PTAB without first paying the underlying property tax bill.
Due to the Supreme Court’s ruling, school districts could be exposed to PTAB appeals where taxpayers seek large assessed-value reductions but do not pay the underlying property taxes for years until after the appeal is decided. However, Illinois law entitles school districts to notice of PTAB appeals and a 60-day window to intervene in them. Considering the Supreme Court’s ruling, school districts should consider intervening in appeals that could significantly reduce property tax revenues or the property tax base. While the county tax sale’s penalties (including loss of property) encourage timely property tax payments, school districts have much more control over intervening in and contesting assessment appeals.
Please contact Tony Senagore or a member of our Board Governance/Corporate practice group with questions.
Source:
Shawnee Community Unit School District No. 84 v. PTAB
